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Raymond Lifestyle, a company under the Raymond Group, has reported a significant decline in its consolidated net profit for the second quarter of FY25. The profit for the quarter ending September 2024 stood at Rs 42.18 crore, marking a 69.72% drop compared to Rs 139.33 crore in the same period last year. The company cited subdued demand and rising inflationary pressures as key factors behind this decline.
As per the regulatory filing from Raymond Lifestyle on Tuesday, the company's revenue from operations also saw a dip, falling by 5.27% to Rs 1,708.26 crore in Q2 FY25, down from Rs 1,803.38 crore in the corresponding quarter last year. Total expenses for the period were reduced by 1.38% to Rs 1,622.95 crore.
Raymond Lifestyle's total income, including other income, decreased by 6.16%, standing at Rs 1,735.21 crore. Managing Director Sunil Kataria commented on the company's performance, stating that it had managed a stable quarter despite the ongoing challenges of weaker consumer sentiment, subdued demand, and inflationary pressures.
A breakdown of the company's key segments reveals that the Textile division, which includes its branded fabric business, experienced an 8.48% decline in revenue, reaching Rs 853.52 crore. This drop was largely attributed to muted customer demand and the period of âShraadh' in September, which impacted consumer spending.
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On a more positive note, Raymond Lifestyle's revenue from the âShirting' fabric segment, which caters to the B2B market, grew by 8.31% to Rs 228.35 crore. Meanwhile, the apparel segment posted a modest 1% increase, bringing in Rs 441.02 crore, thanks to new store openings despite challenging market conditions.
The company's garmenting business, however, saw a decline of 9.28% in revenue, dropping to Rs 259.60 crore. Raymond attributed this dip to shipment delays caused by logistical challenges during the quarter.
Raymond Lifestyle continues to focus on retail expansion, with a total of 1,592 stores in operation, including 129 outlets of its Ethnix by Raymond brand. Kataria expressed optimism about the upcoming festive and wedding seasons, citing recent improvements in demand. The company plans to leverage its retail expansion, new product launches, and marketing campaigns to capture further market share.
This quarter's results represent the first financial performance release of Raymond Lifestyle since its demerger from Raymond Ltd and listing on the stock exchanges on September 5. The company manages brands such as Park Avenue, ColorPlus, Parx, Raymond Made to Measure, Raymond Ready to Wear, Sleepz by Raymond, and Ethnix by Raymond.
As of Wednesday morning, shares of Raymond Lifestyle Ltd were trading at Rs 2,030 per share on the Bombay Stock Exchange (BSE), marking a 7.67% decline from the previous close, according to PTI.
(With inputs from PTI)
